Buying your first home is an exciting yet challenging journey. From understanding the market to securing a mortgage, the process involves various steps that require careful planning. This guide will walk you through everything you need to know as a first-time homebuyer.

1. Understanding the Housing Market

New Zealand’s property market can be competitive, with prices varying across regions. Major cities like Auckland and Wellington tend to have higher property prices compared to smaller towns and rural areas. Researching the market, checking property listings, and attending open homes will help you get a sense of pricing and availability.

2. First-Home Buyer Schemes & Grants

To assist first-time buyers, the New Zealand government offers various schemes: 

• KiwiSaver First Home Withdrawal: If you’ve been contributing to KiwiSaver for at least three years, you may be able to withdraw most of your savings for a house deposit. Check here: https://kaingaora.govt.nz/en_NZ/home-ownership/kiwisaver-first-home-withdrawal/ 

• First Home Loan: Offered by select banks and lenders, this loan requires only a 5% deposit instead of the typical 20%.

3. Budgeting & Home Loan Pre-Approval

Key considerations: 

• Deposit Requirements: Generally, you’ll need at least a 20% deposit, but lower deposit options are available through banks that are able to lend up to 90% or if you qualify for a 95% loans through selected lenders. 

• Mortgage Pre-Approval: Getting pre-approved for a home loan helps you determine your borrowing capacity and strengthens your position when making offers. 

• Additional Costs: Factor in expenses like legal fees, valuation, building inspection, council rates, house insurance and moving costs.

4. Finding the Right Property

Consider the following when choosing your first home: 

• Location: Proximity to work, schools, public transport, and amenities. 

• Property Type: Apartments, townhouses, and standalone homes have different pros and cons. 

• Condition of the Home: Get a building inspection to check for hidden issues like leaks or structural problems.

5. Making an Offer & Legal Process

• Types of Sales: Homes in New Zealand are sold through private sales, auctions, or tenders. 

• Due Diligence: Work with a lawyer or conveyancer to review the sale and purchase agreement and conduct property checks. 

• Negotiation: Depending on the market, you may be able to negotiate the price or conditions.

6. Settling & Moving In

Once your offer is accepted, you’ll need to: 

• Complete final mortgage approval. 

• Pay the deposit (if applicable). 

• Arrange insurance (required by lenders). 

• Settle on the agreed date and receive the keys to your new home.

Final Tips for First-Time Homebuyers 

• Stay informed about interest rates and market trends. 

• Seek professional advice from mortgage brokers and legal experts. 

• Be patient – finding the right home can take time, but it’s worth the effort. 

Buying your first home is a significant milestone. With the right knowledge and preparation, you can navigate the process with confidence and find a place to call your own. Happy house hunting!

Beryl from Bricks and Mortgages will walk you through all of these stages.